Electric Vehicle (EV) Battery Housing Market Size, Share & COVID-19 Impact Analysis, By Vehicle Type (Passenger Car and Commercial Vehicle), By Material (Steel, Aluminum and Others (Carbon Fiber & Carbon Glass)), and Regional Forecast, 2023 – 2030

The global Electric Vehicle (EV) battery housing market size was valued at USD 9.31 billion in 2022. The market is projected to grow from USD 11.80 billion in 2023 to USD 28.40 billion by 2030, exhibiting a CAGR of 13.4% during the forecast period.

The Electric Vehicle (EV) battery housing is a type of box specifically designed for the batteries, such as the lithium-ion battery of an electric vehicle. It is also called a battery case and battery enclosure. The Electric Vehicle battery housing comprises a metal enclosure (top cover & bottom cover) or box that protects the battery cell from damage and moisture, dust, and debris. The housing also delivers structural support to the battery pack and also for additional systems, such as thermal management systems, cooling systems, or battery management systems. The growing adoption of advanced EV battery pack (housing) technologies for enhanced performance is anticipated to propel the Electric Vehicle battery housing market growth.

COVID-19 IMPACT

Increased Demand for Electric Vehicles Boosted Market Growth during Pandemic

The COVID-19 pandemic positively affected the global Electric Vehicle (EV) battery housing market. The pandemic disrupted the supply chain, leading to shortages of critical components and materials used in EV battery production. For instance, lithium-ion batteries are a core component of electric vehicles, and disruptions in the supply of lithium, cobalt, and other essential materials hindered battery production and, consequently, Electric Vehicle (EV) battery housing production.

However, the sales and production of passenger cars have slightly increased due to favorable government policies and subsidies. Some governments implemented policies to stimulate economic recovery, including incentives for electric vehicle adoption. Favorable policies, such as tax credits toward the adoption of EVs and to cope with the negative impact of the COVID-19 pandemic on the overall EV industry, are somehow helping automakers to actively grow into EV components, boosting the market growth.

LATEST TRENDS

Rising Adoption of Lightweight Materials and Modular Design is an Ongoing Trend

The rising adoption of lightweight materials and modular design is an ongoing trend in the market. The trend is driven by the need to enhance design, safety systems, and overall vehicle efficiency. Manufacturers or OEMs are increasingly focused on lightweight materials for Electric Vehicle battery housing to enhance vehicle efficiency and range. Materials, such as aluminum and high-strength composites are gaining popularity due to their properties.

The rising market growth is attributed to the rising demand for lightweight materials, modular design, and improved safety features in electric vehicles. Modular Electric Vehicle battery housing designs are on the rise, allowing for easier scalability and customization. This trend is driven by the need to accommodate different battery sizes and configurations for various EV models.

• For instance, in 2022, SGL Carbon introduced carbon fiber and fiber composite materials for automotive production and industrial applications. The company presented carbon fiber housing for lightweight/weightless construction, impregnated materials based on glass and carbon fiber, and composite battery cases for electric vehicles. The company provided a high-voltage battery housing concept, representing a weight decrease of up to 50 % compared with the corresponding steel component.

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DRIVING FACTORS

Increasing EV Adoption and Battery Technology Advancement to Propel Market Growth

The adoption of electric vehicles increases yearly due to environmental concerns and government incentives. The growing environmental awareness is one of the primary drivers for EVs. Governments are delivering attractive incentives and policies to promote the sales of EVs. Some of these incentives include reduced selling prices, zero or low registration fees, and free charging infrastructure of EVs at multiple charging stations. The growing adoption of electric vehicles drives market growth. These electric vehicles depend on large battery packs, and each of these packs requires a protective housing.

The developments in battery technology are increasing the energy density and range of electric vehicles. The larger and more efficient battery packs further drive the need for specialized EV battery housing. For instance, in June 2023, Toyota announced that the company would introduce high-performance, solid-state batteries and other technologies to improve the driving range and cut costs of future Electric Vehicles (EVs). This development is estimated to drive market growth during the forecast period.

RESTRAINING FACTORS

High Material Cost and Safety Regulations May Hamper Market Growth

The restraining factor in the market could be the high cost of materials. The cost of material used in Electric Vehicle battery housing directly contributes to the overall manufacturing cost of an electric vehicle. The expensive material can significantly raise the price of electric vehicles, making them less competitive with Internal Combustion Engine (ICE) vehicles. The high cost of developing and manufacturing specialized battery housing may hinder demand for Electric Vehicle battery housing. Strict safety regulations govern the design and manufacturing of battery housing to prevent thermal runways and fires. This regulation can be challenging and costly for manufacturers.

SEGMENTATION

By Vehicle Type Analysis

Passenger Car Segment Propels as BYD’s Strategic Move Spurs Growth

Based on vehicle type, the market is segmented into passenger car and commercial vehicle. The passenger car segment holds the highest Electric Vehicle (EV) battery housing market share globally and is expected to grow during the forecast period. The growth is attributed to rising electric passenger car production by OEMs/manufacturers. For instance, in September 2022, BYD Co. Ltd. signed an agreement with WHA Corp. (Industrial Estate developer) to build an electric vehicle production plant in Southeast Asia. This development drives segmental growth in the market. Additionally, government regulations and incentives often focus on promoting the adoption of electric passenger vehicles, driving market growth.

The commercial vehicle segment holds the second largest market share. The segment’s growth is attributed to the increasing research and development, innovation, and vehicle launches. For instance, in March 2022, Ford announced to introduce four new electric commercial vehicles and three passenger vehicles in Europe by 2024, and the company decided to sell 600,000 electric vehicles in the region by 2026.

By Material Analysis

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Aluminum’s Weight Advantage Increases Demand and Propels Market Leadership

Based on material, the market is projected into steel, aluminum, and others. The aluminum segment holds the maximum market share globally. The material is lighter than steel, which helps decrease the overall weight of the electric vehicle and delivers maximum vehicle range and energy efficiency. Such properties of the material drive segmental growth.

The steel segment holds the second-largest market share. The segmental growth is attributed to its strength, recyclability, and cost efficiency. The steel is highly recyclable, providing eco-friendly in line with the sustainability goals of the EV industry.

REGIONAL INSIGHTS

The market is analyzed across North America, Europe, Asia Pacific, and the rest of the world.

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Asia Pacific stood at USD 4.75 billion in 2022. The region dominated the market in 2022 and is expected to continue its dominance throughout the forecast period, with the fastest CAGR. The APAC regional growth is attributed to the existence of a strong automotive sector in developing economies, including China, India, Japan, and others. Additionally, increasing demand for electric vehicles in India, China, Japan, and South Korea further propel market growth.

Europe holds the second-largest market share as the region is an early adopter of electric vehicles. Manufacturers are heavily investing in electric vehicle production, which has driven innovation and adoption of EV component manufacturing, such as EV battery pack & housing. European companies have actively researched and developed advanced battery technology, Electric Vehicle (EV) housing material, safety, and management safety. Such developments fuel the Electric Vehicle battery housing demand.

North America’s increasing demand for electric light commercial transportation fuels the market growth. The rising consumer demand for electric vehicles due to environmental concerns, government incentives, and advanced technology are projected to boost the adoption of electric vehicles and drive market growth.

KEY INDUSTRY PLAYERS

Companies Focus on a Wide Range of Product Offerings to Gain Competitive Edge

Key market players include SGL Carbon, ThyssenKrupp AG, and Novelis Inc. Top manufacturers focus on providing technologically advanced Electric Vehicle battery housing for various vehicles globally.

ThyssenKrupp AG is one of the leading battery housing manufacturers. The company focuses on research and development activities to develop new products with improved capabilities. They provide a selectrify steel battery housing which is newly developed. It comprises an enclosure with a connection profile, cover, upper and lower support arm, frame, and underride guard.

List of Key Companies Profiled:

• SGL Carbon (Germany)


• Nemak, S.A.B. de C.V. (Mexico)


• Novelis Inc. (U.S.)


• Gestamp Automocion, S.A. (Spain)


• Constellium SE (France)


• Hanwha Solutions Advanced Materials (South Korea)


• UACJ Corporation (Japan)


• GF Linamar LLC (U.S.)


• ThyssenKrupp AG (Germany)


• Minth Group (China)


• Magna International Inc. (Canada)


• TRB Lightweight (U.K.)


• Hitachi Metals, Ltd. (Japan)


• Norsk Hydro ASA (Norway)


• Kautex Textron GmbH & Co. KG (Germany)


• Saudi Basic Industries Corporation (SABIC) (Saudi Arabia)


• Teijin Limited (Japan)


• LANXESS (Germany)


• Evonik Industries AG (Germany)


• Covestro AG (Germany)

KEY INDUSTRY DEVELOPMENTS:

• July 2023 - Magna announced that the company would invest USD 790 million to build the first two supplier facilities at Ford’s BlueOval City supplier park in Stanton, Tennessee, and a stamping and assembly facility in Lawrenceburg, Tennessee. Magna will supply Ford’s BlueOval City with battery enclosures, truck frames, and seats for the automaker’s second-generation electric truck. Magna’s two BlueOval City supplier park facilities contain a new 800,000-square-foot frame and battery enclosures and a 140,000-square-foot seating facility.


• February 2023 - Magna signed a contract with General Motors (GM) to supply battery enclosures for the all-new 2024 Chevrolet Silverado EV, which will be assembled at GM’s Factory ZERO. Magna will produce the enclosures beginning later in 2023 at its Magna Electric Vehicle Structures facility in St. Clair, Michigan, where it already produces battery enclosures for the GMC HUMMER EV. The company is adding a 740,000-square-foot expansion to the existing 345,000-square-foot Magna Electric Vehicle Structures facility in St. Clair, which opened in 2021.


• January 2023 - Gestamp Automocion S.A. (Gestamp) announced its fourth hot stamping line in India and presented for the second time its range of products and innovations for new mobility at the Indian Auto Expo 2023. A new hot stamping line is planned to be opened by the end of 2023, in addition to the existing ones in Pune and Chennai. Gestamp unveiled its extreme size parts, battery boxes, cell-to-pack concepts, joining technologies, and chassis innovative lightweight solutions or active frunks at the event.


• March 2022 - Gestamp Automocion S.A. announced that the company would build the NEV (New Energy Vehicle) Parts East China Base in Qiandeng Town, Kunshan City, Jiangsu Province. Gestamp Automotive Kunshan Co., Ltd., a subsidiary of Gestamp, signed the Gestamp NEV Parts East China Base Project. This project mainly supplies battery cases and door parts to EV makers, marking Gestamp’s first project with these components.


• April 2020 - SGL Carbon signed a contract with BMW Group for battery enclosure. BMW Group has now nominated SGL Carbon to produce battery enclosure cover components in series. This will include the production of an innovative glass-fiber-based cover plate for the battery housing for usage in a future plug-in hybrid model of BMW Group.

REPORT COVERAGE

The market research report provides a detailed analysis focusing on key aspects such as leading market players, competitive landscape, and vehicle type. Besides, the report includes insights into the market trends and highlights key industry developments. In addition to the factors above, the report encompasses several factors that contributed to the market's growth in recent years.

An Infographic Representation of Electric Vehicle (EV) Battery Housing Market

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